- The deal will allow 12,000 Italian taxi drivers to accept trips through the Uber app.
- It follows a similar partnership that Uber agreed to in New York earlier this year.
Uber has partnered with IT Taxi, the largest taxi dispatch service in Italy, with an aim to boost the company’s presence in the country.
According to a statement released on Tuesday, the deal will allow IT Taxi’s 12,000 taxi drivers to accept trips through the Uber app, which will cover 90 cities across the country.
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This comes as Uber and other ride-hailing apps grapple with an ongoing shortage of drivers, leading to higher fares and longer wait times.
Uber said the agreement would help the firm increase its presence in Italy, Europe’s fourth-largest economy.
It follows a similar deal that Uber agreed to in March in New York. The company also has partnerships with taxi groups in Hong Kong, Madrid and San Francisco.
“This is a truly historic deal in one of our most strategically important markets globally,” Uber CEO Dara Khosrowshahi said in a statement.
“We strongly believe that Taxi and Uber are better together, and we are committed to making this a partnership of trust and cooperation in the future.”
Over the years, the company has faced opposition from Italian taxi drivers. The company was the target of protests from taxi drivers in 2017 who accused it of engaging in unfair competition. In the same year, an Italian court blocked the company over anti-competitive concerns, but this was later reversed.
Now, its platform is set to be opened to thousands of taxi drivers across the country.
Uber declined to share full financial terms for the deal. A company spokesperson said its taxi service charges a fixed commission for access to the platform. In Spain, the Uber fee rate is 12%.
Credit: www.cnbc.com /